How to Get a Business Loan with No Collateral

by Contributor; Updated September 26, 2017

Obtaining a business loan may be necessary to get your business through tough times or help you pay for equipment, supplies. stock or pay for more employees. Getting a business loan with no collateral means that you don't have to put anything up, such as the equity on your home or business inventory, to obtain the loan.

Step 1

Have good credit. Good credit can greatly help you obtain an unsecured business loan. Get a copy of your credit report and check for any negative information. If there is false or incorrect information on your report, you must file a dispute in writing and send proof to the three major credit card bureaus -- Experian, TransUnion and Equifax.

Step 2

Apply for unsecured loans. Lenders rely on your promise to pay back the loan without collateral. With a little research, you can find these loans through different lending companies.

Step 3

Turn to family and friends for personal loans to cover business expenses. You may be able to set up a flexible pay back schedule and pay them low interest that is much less than what a typical bank would charge.

Step 4

Use credit cards, especially if you have a strong credit score. Apply for a high limit credit card with the lowest possible interest rate. Determine the amount you need and use only that for the business expenses you have.

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